As Pakistan ponders how to gain a foothold in global solar photovoltaic production, experts are calling for strategies that suit the country’s unique needs and capabilities and avoid competition with neighboring China, the world’s dominant PV manufacturing base.
Waqas Musa, chairman of Pakistan Solar Association (PSA) and CEO of Hadron Solar, told PV Tech Premium that it is important to target niche markets, especially small solar modules for agriculture and off-grid applications, rather than competing directly with Chinese giants.
Last year, Pakistan’s Ministry of Commerce and Technology and the Engineering Development Board (EDB) formulated a policy to promote local manufacturing of solar panels, inverters and other renewable technologies.
”We’ve had a lukewarm response,” Moussa said. “We think it’s good to have local production, but at the same time, market realities mean that many large countries with large scale production will have a hard time resisting the influence of Chinese manufacturers.”
So Moussa warned that entering the market without a strategic approach could be counterproductive.
China dominates global solar production, with companies like JinkoSolar and Longi focusing on high-power solar modules in the 700-800W range, primarily for utility-scale projects. In fact, Pakistan’s rooftop solar market relies heavily on Chinese imports.
Moussa believes that trying to compete with these giants on their terms is like “hitting a brick wall.”
Instead, manufacturing efforts in Pakistan should focus on smaller modules, especially in the 100-150W range. These panels are ideal for agriculture and rural areas where demand for small solar solutions remains high, especially in Pakistan.
Meanwhile, in Pakistan, small-scale solar applications are crucial. Many rural homes that are unused and have no access to electricity only need enough power to run a small LED light and a fan, so 100-150W solar panels can be a game changer.
Musa stressed that poorly planned manufacturing policies can have unintended consequences. For example, imposing high import taxes on solar panels may make local production possible in the short term, but it will also increase the cost of solar installations. This could reduce adoption rates.
”If the number of installations decreases, we will have to import more oil to meet energy needs, which will cost more money,” Moussa warned.
Instead, he advocates a balanced approach that promotes local manufacturing and makes solar solutions accessible to end users.
Pakistan can also learn from the experiences of countries like Vietnam and India. Companies like Indian conglomerate Adani Solar have successfully exploited tensions between the US and China to gain a strong position in the US market. Musa suggested that Pakistan could explore similar opportunities by identifying strategic gaps in global supply chains. Players in Pakistan are already working on this strategy, he said.
Ultimately, the priority given to developing small solar modules will be in line with Pakistan’s energy needs and socio-economic realities. Rural electrification and agricultural applications are important market segments, and domestic production to meet this demand can help Pakistan avoid direct competition with industrial giants and create a competitive advantage.
Post time: Dec-26-2024